Banco Santander has registered net attributable profit of €4,519 million in the first half of 2009, a decline of 4% from a year earlier but up 9% compared to the second half of 2008. Second quarter profit, which amounted to €2,423 million, only below the result achieved in the same period of last year, when profit totalled €2,524 million.
Reportedly, profit was driven by growth in revenues (up 14%) almost double that of costs (up 8%). Excluding acquisitions and exchange rate effects, revenues were up 11%. Continental Europe contributed 50% of group profit, Latin America 34% and UK 16%. Loans rose by 16% and deposits by 36%. Excluding the exchange rate effect and not including the contributions of the 2008 acquisitions, growth in loans was 3% and in deposits 19%.
Continental Europe registered attributable profit of €2,657 million, an increase of 13%. Loans grew by 1% and deposits by 17%. In Latin America, attributable profit stood at $2,405 million or €1,806 million (down 4%), with growth of 7% in loans and deposits, excluding the sale of Banco de Venezuela and the exchange rate effect. Attributable profit in the UK totalled £790 million or €885 million, up 41%. Loans grew by 43% and deposits by 66% in pounds following the integration of Alliance & Leicester and Bradford & Bingley. The non-performing loan ratio was 2.82% and the coverage rate was 72%. NPLs in Spain stood at 2.72%.
The efficiency ratio stands at 41.6%, improving 2.3 points from the year before, despite the integrations of A&L, B&B and Sovereign, with efficiency ratios worse than the Group average.
The capital ratios underline Banco Santander’s solvency, with a BIS ratio of 13.8% and core capital of 7.5%. Acquisitions enhanced Santander’s geographical diversification. The UK accounts for 33% of loans and 31% of resources, while Sovereign accounts for 5% and 6%, respectively.
